Reading Candle Stick Charts
Candle stick charts have been around for hundreds of years and are still one of the most popular charts used in Japan. Chart usage is popular not only for commodity trading, but also for stock and F/X traders as well. Commodity traders like to use charts to gather market information including trends and patterns for an individual commodity futures contract. Charts can give traders a feel for the market and can show possible buy or sell patterns depending on the chart and the individual reading the chart. In a candle stick chart, there are 3 different kinds of basic candle patterns to remember. Look at the candle stick chart below as an example. The first pattern (1) with the candle part unfilled indicates a closing price higher than the opening price. The second pattern (2) filled in with orange color indicates a closing price lower than the opening price. The third pattern (3) with no candle body indicates the opening and closing price were the same or unchanged. You can view intraday, daily, weekly and monthly candle stick charts through the e-Formula Trading system.
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